Mortgage Rates Creep Even Lower Among Global Concerns

Mortgage rates have only headed one direction since the Fed's decision in December to raise rates by 0.25 percent. Freddie Mac says the falling rates reflect the tumultuous global economy and weak inflation.

According to Freddie Mac, for the week ending January 21, 2016, the 30-year fixed-rate mortgage (FRM) averaged 3.81 percent with an average 0.6 point. Last week, it averaged 3.92 percent and a year ago, the 30-year FRM averaged 3.63 percent.

"The 30-year mortgage rate dropped 11 basis points to 3.81 percent, the lowest rate in three months," Becketti stated. "This drop reflected weak inflation—0.7 percent CPI inflation for all of 2015—and nonstop financial market turbulence that is driving investors to the safe haven of Treasuries. However, the survey was largely complete prior to Wednesday's Treasury rally that drove the yield on the 10-year Treasury below 2 percent, down 29 basis points since the end of 2015."

The 15-year FRM this week averaged 3.10 percent with an average 0.5 point, down from 3.19 percent last week. Last year at this time, the 15-year FRM averaged 2.93 percent, Freddie Mac reported.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.91 percent this week with an average 0.5 point. Last week it averaged 3.01 percent and a year ago, the 5-year ARM averaged 2.83 percent.

The survey found that 41 percent of Americans believe rate increases could have dire effects on their personal finances and on the U.S. economy in general.

Those between 30 and 49 were most worried, the report found. A full 44 percent in this age range expressed concern over where the economy is headed. Twenty percent of Millennials, the largest generational group to voice concerns, said they worried about their personal economic futures. Millennials were, however, the least likely (12 percent) to be concerned about the effects of rate hikes on the economy overall.

On the other side, those 65 and older were far less concerned‒‒37 percent in this age group said they worried about their own finances or the economy in general.

Check Also

RMS’s financial support was directed to various food banks in the local communities the Company serves, including Connecticut, Massachusetts, Maine, Maryland, North Carolina, New Hampshire, New York, Pennsylvania, Rhode Island, and South Carolina.

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.